Gail 4Q FY 2013

7/28/2019 Gail 4Q FY 2013

1/12

Please refer to important disclosures at the end of this report 1

Quarterly highlights (Standalone)Y/E March (` cr) 4QFY2013 4QFY2012 % chg (yoy) 3QFY2013 % chg (qoq)Net sales 12,409 10,455 18.7 12,474 (0.5)EBITDA 1,137 734 54.9 2,002 (43.2)

EBITDA margin (%) 9.2 7.0 214bp 16.0 (689)bp

Adj. PAT 618 483 28 1,285 (52)Source: Company, Angel Research

For 4QFY2013, GAIL India (GAIL) reported a lower-than-expected profit due to

the impact of transmission tariff cut by Petroleum and Natural Gas Regulatory

Board (PNGRB). We maintain our Neutral rating on the stock.Top-line grew by 18.7% yoy: The companys top-line grew by 18.7% yoyto `12,409cr (above our estimate of `12,038cr), mainly due to a

better-than-expected performance by the Petrochemicals and LPG segments.

The companys fuel subsidy burden stood at `587cr for the quarter.

EBITDA increased by 54.9% yoy: The Natural Gas Trading and Petrochemicalsegments EBIT grew by 109.1% and 9.4% yoy, respectively. However, the Natural

Gas Transmission segments EBIT decreased 87.5% yoy to `41cr due to a one

time impact of the PNGRB order which reduced the transmission tariff for KG D6

pipeline by 53.0% with retrospective effect from November 20, 2008.

Nevertheless, GAILs EBITDA improved by54.9% yoy to `1,137cr in 4QFY2013.

Higher depreciation and taxes dents PAT growth:The other income increased by17.4% yoy to `270cr, whereas the tax rate stood at 45.8% for the quarter

compared to 33.9% in 4QFY2012. Consequently, the net profit increased by

27.9% yoy to `618cr, although it was below our estimate of `835cr.

Outlook and valuation: Over the past one year, gas production from the KGbasin has declined significantly. Further, we do not expect any meaningful

increase in the production at KG D6 over the coming two years. Hence, we expect

utilization levels for GAILs pipelines to remain low during FY2014. Moreover, a

cap on the gas marketing margin (which is currently under review by the PNGRB

would remain an overhang on the stock. Hence, we maintain our Neutral ratingon the stock.Key financials - StandaloneY/E March (` cr) FY2012 FY2013E FY2014E FY2015ENet sales 40,441 47,522 52,102 52,876% chg 24.6 17.5 9.6 1.5

Net profit 3,654 4,021 4,322 4,527% chg 2.6 10.1 7.5 4.7

OPM (%) 13.8 13.6 15.7 16.1

EPS (`) 28.8 31.7 34.1 35.7P/E (x) 10.8 9.8 9.1 8.7

P/BV (x) 1.8 1.6 1.4 1.3

RoE (%) 17.9 17.4 16.4 15.2

RoCE (%) 18.5 17.3 17.4 16.2

EV/Sales (x) 1.0 0.8 0.6 0.6

EV/EBITDA (x) 7.1 5.6 4.1 3.6

Source: Company, Angel Research

NEUTRALCMP `311

Target Price -

Investment Period -

Stock Info

Sector

5,967

Bloomberg Code

Shareholding Pattern (%)

Promoters 57.3

MF / Banks / Indian Fls 15.7

FII / NRIs / OCBs 16.9Indian Public / Others 10.1

Abs. (%) 3m 1yr 3yr

Sensex 3.7 22.8 15.2

GAIL (6.3) (6.0) (32.6)

39,488

396/300

68,052

1

Oil & Gas

Avg. Daily Volume

Market Cap (` cr)

52 Week High / Low

Net debt (` cr)

10

19,610

5,939

GAIL.BO

GAIL@IN

Beta

Face Value (`)

BSE Sensex

Nifty

Reuters Code

Bhavesh ChauhanTel: 022 - 3935 7800 Ext: 6821

[email protected] RachhTel: 022- 39357600 Ext: 6841

[email protected]

GAIL IndiaPerformance Highlights

4QFY2013 Result Update | Oil & Gas

June 3, 2013

7/28/2019 Gail 4Q FY 2013

2/12

GAIL | 4QFY2013 Result Update

June 3, 2013 2

Exhibit 1:4QFY2013 performance (Standalone)

Y/E March (` cr) 4QFY2013 4QFY2012 % chg (yoy) 3QFY2013 % chg (qoq) FY2013 FY2012 % chg (yoy)Net sales 12,409 10,455 18.7 12,474 (0.5) 47,332 40,281 17.5COGS 9,677 8,779 10.2 9,441 2.5 36,309 30,437 19.3Total operating expenditure 11,272 9,721 16.0 10,472 7.6 41,053 34,842 17.8

EBITDA 1,137 734 54.9 2,002 (43.2) 6,469 5,599 15.5EBITDA margin (%) 9.2 7.0 16.0 13.7 13.9

Other income 270 230 17.4 154 74.9 765 648 17.9

Depreciation 273 214 27.2 242 12.4 981 791 24.1

Interest 55 52 5.0 55 (0.4) 195 116 67.4

PBT 1,141 731 56.1 1,859 (38.6) 6,057 5,340 13.4PBT margin (%) 9.2 7.0 14.9 12.8 13.3

Total tax 523 248 111.1 574 (8.9) 2,036 1,686 20.7

% of PBT 45.8 33.9 30.9 33.6 31.6

PAT 618 483 27.9 1,285 (51.9) 4,021 3,654 10.1Source: Company, Angel Research

7/28/2019 Gail 4Q FY 2013

3/12


June 3, 2013 3

Exhibit 2:Segmental performance (Standalone)

Y/E March (` cr) 4QFY2013 4QFY2012 % chg (yoy) 3QFY2013 % (qoq) FY2013 FY2012 % (yoy)NG trading 10,552 9,121 15.7 10,118 4.3 39,609 33,052 19.8

Petrochemical 1,204 963 25.0 1,107 8.8 3,765 3,415 10.2LPG & liquid hydrocarbons 1315 322 308.0 1277 2.9 4434 3090 43.5

Transmission NG 458 846 (45.9) 989 (53.7) 3347 3852 (13.1)

Transmission LPG 103 109 (4.7) 81 28.1 293 454 (35.5)

Gailtel - - - - -

Others 42 42 1.7 43 (2.8) 217 124 75.6

Total 13675 11403 19.9 13616 0.4 51667 43986 17.5Less: Inter segmental 1266 948 33.5 1142 10.9 4334 3707 16.9

Sales 12,409 10,455 18.7 12,474 (0.5) 47,333 40,279 17.5EBITNG trading 347 166 109.1 299 16.2 1,385 1,089 27.2

%EBIT 30.4 55.0 33.9

Petrochemical 472 431 9.4 439 7.3 1,525 1,466 4.0

%EBIT 39.2 44.8 39.7

LPG & Liquid hydrocarbons 493 (332) (248.5) 592 (16.8) 1,588 554 186.5

%EBIT 37.5 -102.9 46.4

Transmission NG 41 325 (87.5) 620 (93.5) 1,832 2,154 (14.9)

% EBIT 8.9 38.4 62.6

Transmission LPG 62 53 16.4 13 366.9 97 272 (64.2)

% EBIT 59.9 49.1 16.4

Gailtel - - - - -

% EBIT - - - - -

Others (34) (38) (10) (83) (59.5) (102) (196) (48)

% EBIT - - - - -

Total EBIT 1,380 606 127.8 1,880 (26.6) 6,326 5,339 18.5% EBIT 11.1 5.8 15.1

Less: Interest 55 52 5.0 55 (0.4) 195 116 67.4

Less: Unallocable exp (184) 178 - 34 - (74) 115 -

Profit before tax 1,141 731 56.1 1,859 (38.6) 6,058 5,340 13.4Source: Company, Angel Research

Exhibit 3:4QFY2013 Actual vs Angel estimates(` cr) Actual Estimates Variation (%)Net sales 12,409 12,038 3.1

EBITDA 1,137 1,601 (29.0)

EBITDA margin (%) 9.2 13.3 (414)bp

Adj. PAT 618 835 (26.0)


7/28/2019 Gail 4Q FY 2013

4/12


June 3, 2013 4

Top-line grew by 18.7% yoy: The companys top-line grew by 18.7% yoy to`12,409cr (above our estimate of `12,038cr), mainly due to higher-than-expected

performance from the Petrochemicals and LPG segments which grew by 25.0%

and 308.0% yoy to`

1,204cr and`

1,315cr respectively. The companys fuelsubsidy burden stood at `587cr in 4QFY2013, compared to `1,397cr in

4QFY2012 and `700cr in 3QFY2013.

Exhibit 4:Net sales grew by 18.7% yoy

9,699

11,260 10,455 11,089 11,36112,474 12,409

19.7

34.6

17.6

25.0

17.1

10.8

18.7

-

5.0

10.0

15.0

20.0

25.0

30.0

35.0

40.0

-

2,000

4,000

6,000

8,000

10,000

12,000

14,000

2QFY12 3QFY12 4QFY12 1QFY13 2QFY13 3QFY13 4QFY13

(%)

(`cr)

Net Sales Net Sales growth (RHS)


Exhibit 5:GAILs subsidy share stood at `587cr

567 536

1,397

700786

700587

0

200

400

600

800

1,000

1,200

1,400

1,600


(`cr)


Exhibit 6: Transmission volumes continue to decline

119 119 116110 106 105

99

-

20

40

60

80

100

120

140


(mmscmd)


EBITDA increased by 54.9% yoy: The Natural Gas Trading and Petrochemicalsegments EBIT grew by 109.1% and 9.4% yoy to `347cr and `472cr, respectively.

However, the Natural Gas Transmission segments EBIT decreased 87.5% yoy to

`41cr due to a one time impact of the PNGRB order which reduced the

transmission tariff for KG D6 pipeline by 53.0% with retrospective effect from 20 th

November 2008. Nevertheless, GAILs EBITDA improved by 54.9% yoy to

`1,137cr in 4QFY2013 and EBITDA margin improved by 214bp yoy to 9.2%,

mainly because of a lower base of 4QFY2012.

7/28/2019 Gail 4Q FY 2013

5/12


June 3, 2013 5

Exhibit 7: EBITDA stood at `1,137cr

1,676

1,761

734

1,899

1,380

2,002

1,137

5.0

7.0

9.0

11.0

13.0

15.0

17.0

19.0

-

500

1,000

1,500

2,000

2,500


(%)

(`cr)

EBITDA EBITDA margins (RHS)


Higher depreciation and taxes dent PAT growth: The other income increased by17.4% yoy to `270cr, whereas the tax rate stood at 45.8% in 4QFY2013

compared to 33.9% in 4QFY2012. Consequently, the net profit increased by

27.9% yoy to `618cr, but below our estimate of `835cr.

Exhibit 8: Adjusted PAT increased by 27.9 yoy

1,0

94

1,0

91

483

1,1

34

985

1,2

85

618

30.6

12.8

(38.3)

15.1

(10.0)

17.7

27.9

(50.0)

(40.0)

(30.0)

(20.0)

(10.0)

-

10.0

20.0

30.0

40.0

-

200

400

600

800

1,000

1,200

1,400


(%)

(`cr)

Adj. PAT Adj. PAT growth (RHS)


7/28/2019 Gail 4Q FY 2013

6/12


June 3, 2013 6

Investment arguments

Upstream segment could see triggers:GAILs asset portfolio includes prospectivebasins such as Myanmar fields and CBM blocks. We view these blocks as a

potential upside for the stock. Of the 27 exploratory blocks owned by GAIL, nine

blocks have potential hydrocarbon discoveries. Any material success in the form of

a major discovery could be a key catalyst for the stock.Falling domestic gas production remains a concern: GAIL is expanding itstransmission capacity from 170mmscmd currently to 300mmscnd in the next two

years. However, gas production from the KG basin has declined significantly over

the past one year. Looking ahead, we do not expect any meaningful increase in

production at KG D6 in the coming year. Hence, we expect utilization levels for

GAILs pipelines to remain low during FY2014.

Outlook and valuation

Over the past one year, gas production from the KG basin has declined

significantly. Further, we do not expect any meaningful increase in the production

at KG D6 over the coming two years. Hence, we expect utilization levels for GAILs

pipelines to remain low during FY2014. Moreover, a cap on the gas marketing

margin (which is currently under review by PNGRB) would remain an overhang on

the stock. Hence, we maintain our Neutral rating on the stock.Exhibit 9: SOTP valuation (FY2015E)

Business segment (` cr) EV `/shareNG transmission (EV/EBITDA 4.0x) 16,806 133

LPG transmission (EV/EBITDA 4.0x) 1,350 11

NG trading (EV/EBITDA 4.0x) 2,981 24

Petrochemicals (EV/EBITDA 4.0x) 7,481 59

LPG and liquid hydrocarbons (EV/EBITDA 4.0x) 4,627 36

E&P upsides (EV/boe 4.0x) 1,601 13

Investments (Book/Market Value X 80%) 2,868 23

Total EV 37,713 297Net debt (2,048) (16)

Equity value (`) 39,761 314Source: Company, Angel Research

7/28/2019 Gail 4Q FY 2013

7/12


June 3, 2013 7

Exhibit 10: Key assumptions

Particulars FY2014E FY2015EGas transmission volumes (mmscmd) 113 125

Gas trading volumes (mmscmd) 83 90Source: Company, Angel Research

Exhibit 11: Angel EPS forecast vs consensus

(`) Angel forecast Bloomberg consensus Variation (%)FY2014E 34.1 32.4 5.2FY2015E 35.7 34.2 4.4


Exhibit 12: One-year forward P/E

0

100

200

300

400

500

600

700

800

Jun-0

7

No

v-0

7

Ap

r-08

Sep-0

8

Feb-0

9

Ju

l-09

De

c-0

9

Ma

y-1

0

Oc

t-10

Ma

r-11

Aug-1

1

Jan-1

2

Jun-1

2

No

v-1

2

Ap

r-13

Shareprice(`)

7x 10x 13x 16x 19x


Exhibit 13: Recommendation summary

Company CMP TP Reco. Mcap Upside P/E (x) P/BV (x) EV/EBITDA (x) RoE (%) RoCE (%)(`) (`) (` cr) (%) FY14E FY15E FY14E FY15E FY14E FY15E FY14E FY15E FY14E FY15E

RIL 788 - Neutral 256,612 - 11.4 10.1 1.1 1.0 6.8 5.4 11.5 11.7 8.5 9.4

ONGC 318 354 Accum. 273,946 11 11.0 11.8 1.8 1.7 5.4 5.1 17.2 14.6 17.1 14.7

Cairn India 285 345 Buy 54,652 21 5.3 5.8 0.8 0.7 2.7 2.3 16.5 13.6 16.0 13.3

GAIL 311 - Neutral 39,488 - 9.1 8.7 1.4 1.3 4.1 3.6 16.4 15.2 17.4 16.2Source: Angel Research

Company background

Incorporated in August 1984, GAIL is India's flagship transmission and distribution

natural gas company engaged in the businesses of natural gas, LPG, liquid

hydrocarbons and petrochemicals. The companys segments include natural gas

marketing, natural gas transmission, liquefied petroleum gas (LPG) transmission

projects and other hydrocarbon production. Currently, GAIL operates a natural

gas transmission network of ~8,000km, with a capacity of 170mmscmd. The

company also has 27 oil and gas exploration blocks and three coal bed methane

blocks. The company has also diversified into exploration and production and city

gas distribution (CGD).

7/28/2019 Gail 4Q FY 2013

8/12


June 3, 2013 8

Profit and Loss Statement (Standalone)

Y/E March (` cr) FY2010 FY2011 FY2012 FY2013 FY2014E FY2015ENet Sales 24,996 32,459 40,281 47,332 52,102 52,876

Other operating income - - 160 190.0 - -Total operating income 24,996 32,459 40,441 47,522 52,102 52,876% chg 5.1 29.9 24.6 17.5 9.6 1.5

Total Expenditure 20,327 27,004 34,842 41,053 43,911 44,371

Net Raw Materials 17,609 22,006 30,437 36,309 42,781 50,408

Other Mfg costs 950 2,046 3,755 3,959 1,786 1,786

Personnel 621 753 650 785 925 1,090

Other 1,147 2,199 - - 3,394 3,394

EBITDA 4,669 5,455 5,599 6,469 8,191 8,506% chg 14.9 16.8 2.6 15.5 26.6 3.8

(% of Net Sales) 18.7 16.8 13.8 13.6 15.7 16.1

Depreciation & Amortization 562 650 791 981 1,840 1,852

EBIT 4,107 4,804 4,808 5,488 6,352 6,653% chg 17.2 17.0 0.1 14.1 15.7 4.8

(% of Net Sales) 16.4 14.8 11.9 11.5 12.2 12.6

Interest & other Charges 70 83 116 195 220 253

Other Income 541 519 648 765 215 248

(% of PBT) 11.8 9.9 12.1 12.6 3.4 3.7

Share in profit of Associates - - - - - -

Recurring PBT 4,578 5,240 5,340 6,057 6,347 6,648% chg 8.6 14.4 1.9 13.4 4.8 4.7

Extraordinary Expense/(Inc.) - - - - - -

PBT (reported) 4,578 5,240 5,340 6,057 6,347 6,648Tax 1,439 1,679 1,686 2,036 2,025 2,121

(% of PBT) 31.4 32.0 31.6 33.6 31.9 31.9

PAT (reported) 3,140 3,561 3,654 4,021 4,322 4,527Add: Share of earnings of asso. - - - - - -

Less: Minority interest (MI) - - - - - -

Prior period items - - - - - -

PAT after MI (reported) 3,140 3,561 3,654 4,021 4,322 4,527ADJ. PAT 3,140 3,561 3,654 4,021 4,322 4,527% chg 12.0 13.4 2.6 10.1 7.5 4.7(% of Net Sales) 12.6 11.0 9.0 8.5 8.3 8.6

Basic EPS (`) 24.8 28.1 28.8 31.7 34.1 35.7Fully Diluted EPS ( ) 24.8 28.1 28.8 31.7 34.1 35.7% chg 12.0 13.4 2.6 10.1 7.5 4.7

7/28/2019 Gail 4Q FY 2013

9/12


June 3, 2013 9

Balance Sheet (Standalone)

Y/E March (` cr) FY2010 FY2011 FY2012 FY2013E FY2014E FY2015ESOURCES OF FUNDSEquity Share Capital 1,268 1,268 1,268 1,268 1,268 1,268Reserves& Surplus 15,655 17,985 20,356 23,363 26,670 30,183

Shareholders Funds 16,924 19,253 21,624 24,631 27,939 31,451Minority Interest - - - - - -

Total Loans 1,480 1,973 4,889 7,389 8,389 9,389

Deferred Tax Liability 1,390 1,633 1,769 1,769 1,769 1,769

Other Long Term Liabilities - 15 278 278 278 278

Long Term Provisions - 289 338 338 338 338

Total Liabilities 19,794 23,164 28,898 34,405 38,712 43,224APPLICATION OF FUNDSGross Block 17,904 22,144 26,307 28,807 33,307 37,607

Less: Acc. Depreciation 9,115 9,741 10,449 11,430 13,269 15,122

Net Block 8,789 12,404 15,858 17,377 20,037 22,485Capital Work-in-Progress 5,426 5,846 7,942 8,530 7,330 5,330

Goodwill - - - - - -

Investments 2,073 2,583 3,549 3,549 3,549 3,549Long Term Loans and advances - 1,687 1,996 1,996 1,996 1,996

Other non-current assets - 73 272 272 272 272

Current Assets 13,884 9,420 9,468 16,077 19,574 23,743Cash 4,343 2,131 931 7,285 10,437 14,548

Loans & Advances 7,606 4,596 5,211 5,211 5,211 5,211

Other 1,935 2,692 3,325 3,580 3,926 3,984

Current liabilities 10,378 8,848 10,186 13,396 14,046 14,150Net Current Assets 3,506 572 (719) 2,681 5,528 9,593Mis. Exp. not written off - - - - - -

Total Assets 19,794 23,164 28,898 34,405 38,712 43,224

7/28/2019 Gail 4Q FY 2013

10/12


June 3, 2013 10

Cash Flow (Standalone)

Y/E March (` cr) FY2010 FY2011 FY2012 FY2013E FY2014E FY2015EProfit before tax 4,578 5,240 5,340 6,057 6,347 6,648

Depreciation 562 650 792 981 1,840 1,852Change in Working Capital 1,453 722 91 2,954 305 46

Others (541) (2,051) (310) (765) (215) (248)

Less: Other income - - - - - -

Direct taxes paid (1,375) (1,484) (1,425) (2,036) (2,025) (2,121)

Cash Flow from Operations 4,677 3,077 4,488 7,192 6,251 6,178(Inc.)/ Dec. in Fixed Assets (3,300) (4,632) (6,618) (3,088) (3,300) (2,300)

(Inc.)/ Dec. in Investments (336) (509) (965) - - -

Others 220 412 442 - - -

Other income - - - 765 215 248

Cash Flow from Investing (3,416) (4,729) (7,142) (2,323) (3,085) (2,052)Issue of Equity - - - - - -

Inc./(Dec.) in loans 280 830 3,037 2,500 1,000 1,000

Dividend Paid (Incl. Tax) (1,113) (1,109) (1,253) (1,015) (1,015) (1,015)

Others 287 (108) (330) - - -

Cash Flow from Financing (546) (388) 1,454 1,485 (15) (15)Inc./(Dec.) in Cash 715 (2,040) (1,200) 6,354 3,152 4,111

Opening Cash balances 3,456 4,172 2,131 931 7,285 10,437Closing Cash balances 4,172 2,131 931 7,285 10,437 14,548

7/28/2019 Gail 4Q FY 2013

11/12


June 3, 2013 11

Key Ratios

Y/E March FY2010 FY2011 FY2012 FY2013E FY2014E FY2015EValuation Ratio (x)P/E (on FDEPS) 12.6 11.1 10.8 9.8 9.1 8.7P/CEPS 10.7 9.4 8.9 7.9 6.4 6.2

P/BV 2.3 2.0 1.8 1.6 1.4 1.3

Dividend yield (%) 2.4 2.4 3.2 2.6 2.6 2.6

EV/Sales 1.4 1.1 1.0 0.8 0.6 0.6

EV/EBITDA 7.4 6.7 7.1 5.6 4.1 3.6

EV/Total Assets 1.7 1.6 1.4 1.0 0.9 0.7

Per Share Data (`)EPS (Basic) 24.8 28.1 28.8 31.7 34.1 35.7

EPS (fully diluted) 24.8 28.1 28.8 31.7 34.1 35.7

Cash EPS 29.2 33.2 35.0 39.4 48.6 50.3

DPS 7.5 7.5 9.9 8.0 8.0 8.0

Book Value 133.4 151.8 170.5 194.2 220.3 247.9

DuPont Analysis (%)EBIT margin 16.4 14.8 11.9 11.5 12.2 12.6

Tax retention ratio 68.6 68.0 68.4 66.4 68.1 68.1

Asset turnover (x) 1.7 1.8 1.7 1.7 1.9 1.9

ROIC (Post-tax) 19.2 17.9 13.4 13.2 15.6 15.9

Cost of Debt (Post Tax) - - - - - -

Leverage (x) - - - - - -

Operating ROE 19.2 17.9 13.4 13.2 15.6 15.9

Returns (%)ROCE (Pre-tax) 22.1 22.4 18.5 17.3 17.4 16.2

Angel ROIC (Pre-tax) 38.3 38.1 27.3 28.4 32.1 30.0

ROE 19.8 19.7 17.9 17.4 16.4 15.2

Turnover ratios (x)Asset Turnover (Gross Block) 1.4 1.6 1.7 1.7 1.7 1.5

Inventory / Sales (days) 9.0 8.4 8.3 8.2 8.5 8.8

Receivables (days) 20 18 18 17 18 18

Payables (days) 86 69 66 77 80 83

WC cycle (ex-cash) (days) (2) (13) (14) (24) (33) (34)

Solvency ratios (x)Net debt to equity (0.3) (0.1) 0.0 (0.1) (0.2) (0.3)

Net debt to EBITDA (1.1) (0.5) 0.1 (0.5) (0.7) (1.0)

Interest Coverage (EBIT/Int.) 58.7 58.0 41.3 28.1 28.9 26.3

7/28/2019 Gail 4Q FY 2013

12/12


June 3 2013 12

Research Team Tel: 022 3935 7800 E-mail: [email protected] Website: www.angelbroking.com

DISCLAIMERThis document is solely for the personal information of the recipient, and must not be singularly used as the basis of any investment

decision. Nothing in this document should be construed as investment or financial advice. Each recipient of this document should make

such investigations as they deem necessary to arrive at an independent evaluation of an investment in the securities of the companies

referred to in this document (including the merits and risks involved), and should consult their own advisors to determine the merits and

risks of such an investment.

Angel Broking Pvt. Limited, its affiliates, directors, its proprietary trading and investment businesses may, from time to time, make

investment decisions that are inconsistent with or contradictory to the recommendations expressed herein. The views contained in this

document are those of the analyst, and the company may or may not subscribe to all the views expressed within.

Reports based on technical and derivative analysis center on studying charts of a stock's price movement, outstanding positions and

trading volume, as opposed to focusing on a company's fundamentals and, as such, may not match with a report on a company's

fundamentals.

The information in this document has been printed on the basis of publicly available information, internal data and other reliablesources believed to be true, but we do not represent that it is accurate or complete and it should not be relied on as such, as thisdocument is for general guidance only. Angel Broking Pvt. Limited or any of its affiliates/ group companies shall not be in any wayresponsible for any loss or damage that may arise to any person from any inadvertent error in the information contained in this report .Angel Broking Pvt. Limited has not independently verified all the information contained within this document. Accordingly, we cannottestify, nor make any representation or warranty, express or implied, to the accuracy, contents or data contained within this document.While Angel Broking Pvt. Limited endeavours to update on a reasonable basis the information discussed in this material, there may beregulatory, compliance, or other reasons that prevent us from doing so.

This document is being supplied to you solely for your information, and its contents, information or data may not be reproduced,

redistributed or passed on, directly or indirectly.

Angel Broking Pvt. Limited and its affiliates may seek to provide or have engaged in providing corporate finance, investment bankingor other advisory services in a merger or specific transaction to the companies referred to in this report, as on the date of this report or

in the past.

Neither Angel Broking Pvt. Limited, nor its directors, employees or affiliates shall be liable for any loss or damage that may arise from

or in connection with the use of this information.

Note: Please refer to the important `Stock Holding Disclosure' report on the Angel website (Research Section). Also, please refer to thelatest update on respective stocks for the disclosure status in respect of those stocks. Angel Broking Pvt. Limited and its affiliates mayhave investment positions in the stocks recommended in this report.

Disclosure of Interest Statement GAIL

1. Analyst ownership of the stock No

2. Angel and its Group companies ownership of the stock No

3. Angel and its Group companies' Directors ownership of the stock No

4. Broking relationship with company covered No

Note: We have not considered any Exposure below `1 lakh for Angel, its Group companies and Directors.

Ratings (Returns) : Buy (> 15%) Accumulate (5% to 15%) Neutral (-5 to 5%)Reduce (-5% to -15%) Sell (< -15%)

Documents

Gail 4Q FY 2013